Anthem Blue Cross 2010 Annual Report Download - page 10

2010 WAS A MOMENTOUS YEAR. HEALTH CARE REFORM
IS NOW THE LAW OF THE LAND, AND WELLPOINT IS
COMMITTED TO MAKING IT WORK FOR OUR CUSTOM-
ERS, SHAREHOLDERS AND ASSOCIATES. IN FACT, WE
MADE GOOD PROGRESS IN 2010, IMPLEMENTING
MAJOR PROVISIONS OF HEALTH CARE REFORM, SOME
AHEAD OF THE DEADLINES SET IN THE LEGISLATION.
Of course, health care reform remains
a work in progress. Clarity about the pro-
grams and their impact will gradually emerge
through 2014 and beyond as supporting reg-
ulations are finalized, and the new state-run
exchanges are established. These develop-
ments will truly determine how the new law
will affect consumers.
As the industry leader—serving more
medical members in the United States than
any other health benefits company, with
about one in nine Americans a member of
one of our affiliated health plans—WellPoint
has the responsibility and the opportunity to
help lead this change. That leadership builds
on a forward-looking strategy and a solid
foundation of operational excellence.
We performed well in 2010, delivering
full-year 2010 adjusted earnings per share
(EPS) of $6.74, which was above our original
guidance and nearly 11 percent above our
2009 adjusted EPS of $6.09. We delivered
these results despite a weak economy and
high unemployment rates, which continued to
impact the way Americans access health
care. We exceeded our goals in many areas
and provided a significant return of capital to
shareholders following the 2009 sale of our
pharmacy benefits management company to
Express Scripts, Inc.
Although our enrollment declined by
1 percent during 2010, that decline was
primarily due to the strategic transfer of
our UniCare business in Texas and Illinois to
another Blue Cross and Blue Shield plan. In our
Blue-branded and government-sponsored busi-
nesses, we achieved organic growth of 169,000
members, or 0.5 percent, collectively.
At the same time, we used our capital
to reinvest in our businesses and enhance
returns for shareholders. In February 2011,
we were pleased to announce that WellPoint
will begin paying a dividend on our stock for
the first time in the company’s history. The
declaration by the board of a $0.25 per share
quarterly dividend, along with the expansion
of our share repurchase program, is an
expression of confidence in our strategy,
future growth outlook and cash flow.
Finally, over the course of 2010, we
refreshed our corporate strategy and imple-
mented organizational changes that enhance
our ability to drive increased affordability for
our customers in the changing health care
marketplace. We believe this strategy sup-
ports a long-term earnings per share growth
rate target of at least 10 percent.
Let me outline for you how we are
positioning WellPoint for future success.
To Our Shareholders, Customers and Communities
2 0 1 0 S U M M A R Y A N N U A L R E P O R T
8